Olam: to invest US$43.5m in a greenfield coca processing facility, primary processing and warehousing facility in Cote D’Ivoire. Invmt to be funded by mix of internal accruals and borrowings. The cocoa processing plant is expected to be commissioned by 1Q12. By end 2nd yr of pdtn (end-FY14), it is expected to contribute a turnover of ~US$175m and EBITDA margin of 10-12%...
The cocoa processing plant will process ~60k mt of cocoa beans into 48k mt of cocoa products, namely liquor, butter and cake.
Cote d’Ivoire is the world’s largest cocoa producer accounting for 1.3m mt or 40% of global production. Investment into cocoa processing is part of Olam’s global cocoa strategy to integrate its value chain to enhance margins and competitive position in cocoa globally.
FY10 results due Aug. 26
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